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A sensitivity analysis of poverty definitions

  • Longford, Nicholas Tibor

    (SNTL and Universitat Pompeu Fabra, Barcelona, Spain)

  • Nicodemo, Catia

    (Universitat Autonoma de Barcelona, Campus Bellaterra, Cerdanyola, Spain; and IZA Bonn, Germany)

We conduct a sensitivity analysis of several estimators related to household income, to explore how some details of the definitions of the variables concerned influence the values of the common estimates, such as the mean, median and (poverty) rates. The purpose of this study is to highlight that some of the operational definitions entail an element of arbitrariness which leaves an undesirable stamp on the inferences made. The analyses use both a cross-sectional and a longitudinal (panel) component of the EU-SILC database.

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Paper provided by IRISS at CEPS/INSTEAD in its series IRISS Working Paper Series with number 2009-15.

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Length: 43 pages
Date of creation: Nov 2009
Date of revision:
Handle: RePEc:irs:iriswp:2009-15
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